Topic Wiki

Editor’s note: I know enough about this topic to be dangerous, but I’m not a true expert so please feel free to add to or edit anything in this wiki that will improve it. The FAQs contain many oversimplifications but that is intentional to make the information relatable to the audience. Thanks!

Frequently Asked Questions

What are blockchains and bitcoins and what is the difference?
A blockchain is the fundamental element in a crypto currency system. A blockchain is an accounting ledger. Each block contains a bunch of journal entries (i.e. a chronological record of transactions) that gets encrypted (by miners) but can be downloaded and read by anyone on the network. Why the blockchain ledger is secure and how we can vouch for its integrity is a slightly more advanced topic.

An accounting ledger typically keeps track of money, and a blockchain is no different. But the only type of money that it can accurately track is digital money that lives on the blockchain network. So dollars, euros, etc are out. The digital money that lives on the blockchain is called a crypto currency, and the most well-known one at this time is Bitcoin.

Currently there are a few major blockchain networks: the Bitcoin Network, the Ethereum Network, and the Litecoin Network. Each one has its own currency, which are Bitcoin, Ether, and Litecoin, respectively.

I’m just a simple DDFer and not an accountant + cryptographer + hacker all at the same time. Can you make this a little simpler to understand?
Let’s try an analogy. There is a certain website called Dansdeals.com and it has quite a following. Some of the followers are just users/readers but others are more active and produce value for the website. When they provide value, they earn currency for their work – called “EQP” and “HT”. So we have something we will call the Dansdeals Blockchain Network that is simply a record keeper of various ongoing deals and it issues a native currency that is fractionable (10,000 EQP = 1 HT). This is similar to the Blockchain network recording financial transactions and issuing bitcoins. The ones who work for the network (miners) earn bitcoins and everyone else needs to buy it to participate.

The analogy improves if you imagine that the Dansdeals website visitors have to pay a small amount, let’s say 5 EQP, in order to access a deal or a code that is recorded on the network. If the website has 30,000 followers who love deals, but only 1,000 active members who earn EQP, then you can see that there is a need for a marketplace to be created where you can buy EQP for later use.

Of course, websites are not networks, and this analogy is far from perfect. But useful.

How much is a Bitcoin worth
No one knows. A few people are speculating its worth based on the potential that Bitcoin will one day become a major world currency that people use in their daily lives. Most people though are speculating its worth based on what the next new investor will pay them for it (google “Greater Fool Investing”).

Even if a crypto currency becomes dominant, who says it will be Bitcoin? Maybe it will be Schmitcoin?
This is completely possible. Bitcoin and Ether are the most likely at this point, but their long term survival is not at all guaranteed.

So why all the fuss about Bitcoin? Shouldn’t we wait for Schmitcoin and its cousins to come out?
You could, but you don’t want to ignore how hard it is to start up a network from scratch. It may be that as little as one person can create rival code to compete with the existing digital currencies and blockchains, but one person is not a network. You need a lot of highly technical and motivated people to join you and also to invest their time, energy, and money in making that network run. It’s a highly specialized group of people, and most of the people who would fit that profile are already tied up with an existing network. So it’s not impossible, especially in the long-term, but even if it does happen it would be unlikely to pop up overnight and so Vegas odds for Bitcoin are way shorter.

Let’s go back to the Dansdeals analogy. Imagine that Dansdeals is not the only such website, and there are other websites in existence that provide similar services. For the sake of the analogy let’s call them MMS and OMAAT. They too have big enough followings to survive independently, and even though each one offers a slightly different flavor that differentiates them, anyone on one of the networks could also get their most important needs met on one of the other networks. In this analogy, do you think it’s worth collecting EQP/HT or not? After all, Schmansdeals.com could open up one day and all the business could move there.

The argument for the difficulty of starting up a rival blockchain network is much stronger than in the analogy (especially if we start to include “smart contracts” in the discussion), but the basic idea that you need a critical mass of follows to be successful and compete with existing rivals is the same.

« Last edited by yuneeq on December 25, 2017, 01:05:21 AM »

Author Topic: BitCoin Master Thread  (Read 169895 times)

Offline henche

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Re: BitCoin Master Thread
« Reply #600 on: December 25, 2017, 06:39:28 PM »
I think the market Is finally ready for shmitcoin

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Re: BitCoin Master Thread
« Reply #601 on: December 25, 2017, 06:51:19 PM »
You can’t make these things up. What an amazing name for a new digital currency about to be launched.

https://hacked.com/ico-analysis-lala-world/
I've been waiting over 5 years with bated breath for someone to say that!
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Offline This is who I am

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Re: BitCoin Master Thread
« Reply #602 on: December 28, 2017, 08:14:14 PM »
Any know anything about Ripple?
“Sometimes the questions are complicated and the answers are simple.”

Offline This is who I am

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Re: BitCoin Master Thread
« Reply #603 on: December 28, 2017, 08:19:33 PM »
And is this a good site to buy/sell? https://changelly.com
“Sometimes the questions are complicated and the answers are simple.”

Offline JACKBLUE

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Re: BitCoin Master Thread
« Reply #604 on: December 28, 2017, 09:13:57 PM »
Any know anything about Ripple?
what do you wanto know?
I bought some on binance.com

Offline Mordyk

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Re: BitCoin Master Thread
« Reply #605 on: December 28, 2017, 09:21:13 PM »
what do you wanto know?
I bought some on binance.com
+1
#TYH

Offline This is who I am

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Re: BitCoin Master Thread
« Reply #606 on: December 29, 2017, 10:10:37 AM »
what do you want to know?
I bought some on binance.com
A co-worker got some but said I need to buy bitcoin first then convert it.. is there another way?
 
“Sometimes the questions are complicated and the answers are simple.”

Offline lubaby

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Re: BitCoin Master Thread
« Reply #607 on: December 29, 2017, 10:17:54 AM »
A co-worker got some but said I need to buy bitcoin first then convert it.. is there another way?
You can buy with a CC directly on some platforms, but then you’re paying CC fee. If you believe it’ll keep going up (which is likely why you’re looking to buy), then just include the CC fee as part of the unit price.

Do you have accounts on any platform yet? Some take time to verify, others allow trading without verification. Feel free to PM if you need help getting set up.

Offline Mordyk

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Re: BitCoin Master Thread
« Reply #608 on: December 29, 2017, 10:22:55 AM »
A co-worker got some but said I need to buy bitcoin first then convert it.. is there another way?
Thats what i did and took some time. and bitcoin dropped in between. Your better off going with
You can buy with a CC directly on some platforms, but then you’re paying CC fee. If you believe it’ll keep going up (which is likely why you’re looking to buy), then just include the CC fee as part of the unit price.

#TYH

Offline This is who I am

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Re: BitCoin Master Thread
« Reply #609 on: December 29, 2017, 01:58:12 PM »
You can buy with a CC directly on some platforms, but then you’re paying CC fee. If you believe it’ll keep going up (which is likely why you’re looking to buy), then just include the CC fee as part of the unit price.

Do you have accounts on any platform yet? Some take time to verify, others allow trading without verification. Feel free to PM if you need help getting set up.

Just getting my feet wet, and want to see all options, dont have the $$$$ for Bitcoin just yet
“Sometimes the questions are complicated and the answers are simple.”

Offline This is who I am

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Re: BitCoin Master Thread
« Reply #610 on: December 29, 2017, 03:23:25 PM »
Thanks for all the help and advice
“Sometimes the questions are complicated and the answers are simple.”

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Re: BitCoin Master Thread
« Reply #611 on: December 29, 2017, 03:26:52 PM »
Thanks, I will .
How did your short make it through the fluctuations of late
Feelings don't care about your facts

Offline ludmila

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Re: BitCoin Master Thread
« Reply #612 on: December 29, 2017, 07:47:28 PM »
How did your short make it through the fluctuations of late
Exited half position last week at a good profit, the rest  I have a stop of $17455 for now. I'll keep lowering my stop as long as it keeps going down.
I was the Best,still the Best, and will always be the Best.
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Offline mrprez27

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Re: BitCoin Master Thread
« Reply #613 on: December 30, 2017, 07:03:23 PM »
what do you wanto know?
I bought some on binance.com
Everyone should be doing research before they throw money into anything....when the coins start becoming popular is when they are already ending their bullish run - I bought ripple when it was .40 cents (just a small amount)....it hit $2 and now everyone is running to buy - this is dangerous, for all everyone knows the price now could be its benchmark...before it corrects. It may be a smaller risk to put in $200 in 10 random coins worth .00001 and hope a few at least triples then put everything in one of the big four coins (bit coin, ethurem, litecoin and ripple).

Offline David Smith

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Re: BitCoin Master Thread
« Reply #614 on: December 30, 2017, 07:09:54 PM »
If you need to quote your friend/co-worker/neighbor/relative when discussing your knowledge in the cryptocurrency market, and are asking if "anyone knows anything" about something or where a good platform to buy is, you obviously don't have a deep enough knowledge to make an educated purchase or to trade prudently. Just because the aforementioned friend/co-worker/neighbor/relative made money in it doesn't mean they know what they're talking about or that you should buy.
Who do you think you are fooling? You think you are going to pull a quick one on your Creator? Good luck with that.
JTZ

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I've been waiting over 5 years with bated breath for someone to say that!
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Offline This is who I am

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Re: BitCoin Master Thread
« Reply #616 on: December 31, 2017, 08:43:24 AM »
If you need to quote your friend/co-worker/neighbor/relative when discussing your knowledge in the cryptocurrency market, and are asking if "anyone knows anything" about something or where a good platform to buy is, you obviously don't have a deep enough knowledge to make an educated purchase or to trade prudently. Just because the aforementioned friend/co-worker/neighbor/relative made money in it doesn't mean they know what they're talking about or that you should buy.
correct, that is why I am here to learn and get more knowledge from all sources before I make a dive into the deep end...
“Sometimes the questions are complicated and the answers are simple.”

Offline Super Speed

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Re: BitCoin Master Thread
« Reply #617 on: December 31, 2017, 08:53:55 AM »
try binance
Binance doesn't carry BCH

Offline yuneeq

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Re: BitCoin Master Thread
« Reply #618 on: December 31, 2017, 09:05:11 AM »
Binance doesn't carry BCH

They actually do but for some reason they label it BCC.
The only trading pair they have is for BTC.

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Re: BitCoin Master Thread
« Reply #619 on: January 01, 2018, 10:18:35 PM »
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.